Powervault raises £700,000 crowfunding to compete with Tesla
Crowdcube investment will go towards target of installing 50,000 home energy storage systems by 2020
British technology business Powervault has announced plans to rival Tesla having secured £700,000 investment via equity crowdfunding site Crowdcube to develop its home energy storage solutions.
The company closed the campaign, it’s second crowdfunding round, in three and a half days with £200,000 investment from the London Co-Investment Fund – the fund’s first cleantech investment to date – and £100,000 from Future Matters.
Founded in 2012 by Sustainable Ventures Development and chaired by Simon Acland of VC fund Quester, Powervault has developed the “UK’s first” fully integrated domestic energy storage system which stores free renewable energy generated by solar panels and releases it at night when household demand peaks – cutting electricity bills by “up to 15%”.
With electric car manufacturer Tesla having recently unveiled plans to enter the market with its batteries for homes and businesses, London-based Powervault is aiming to rival it with a target to install its systems in 50,000 homes within the next five years.
It will use the funding to implement a redesign which will cut its manufacturing costs by 20%, to develop a lithium-ion version of the product, and to establish new sales channels.
Powervault managing director, Joe Warren, said of the company’s goals: “We’re already making sales and we aim to be a household name in five years.
“Tesla is raising awareness of home energy storage, exciting potential customers and helping to create a market. Their entry into the market demonstrates the scale of the business opportunity, with battery costs falling and up to two million UK homes forecast to have solar panels by 2020.
Luke Lang, co-founder of Crowdcube, said: “It’s fantastic that our investor community has been able to invest alongside the London Co-Investment Fund in an innovative tech business like Powervault. It was one of the fastest funding businesses on Crowdcube, demonstrating the crowd’s appetite to invest in the emerging home energy storage market.”